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Monday, June 29, 2009

Broadcom Bumps Offer For Emulex To $912M

Irvine-based Broadcom said late Monday that it has raised its bid for Emulex Corp. from $9.25 a share to $11.00 per share in cash. The new offer boosts the value of Broadcom's hostile bid for Emulex to $912M, up from $764M that the firm had offered previously. In a statement, Broadcom said the offer was the "best offer" it intends to make, and that if it is unable to complete its acquisition, it will "move on." In making the increased bid, Broadcom compared the performance of Emulex stock to competitor QLogic, saying that if Emulex's share price followed the trading of QLogic, it would only be worth $7.11, making its offer a 55% premium to that price. Broadcom said its offer would last until midnight NYC time, July 14, 2009.